American Architects Embrace China Market

Contributed by Siyu Wang

According to a recent New York Times article, American architects are rapidly expanding their business in China, which mainly constitutes projects on high-end homes and fancy skyscrapers. As the country experiences rapid development and more Chinese billionaires emerge with handfuls of spare money, China is increasing in its demand for not only substantial mansions but also stylish office buildings. At the moment where Americans become more conservative in spending, architects facing harder client relationships domestically choose to enter the unsaturated market across the globe, and find the environment surprisingly welcoming. With a desire for western aesthetic designs and feeling unconfident of the work of architectural firms within the country, the rich Chinese individuals and corporations are extremely collaborative and appreciate the projects American architects are carrying out.

Is this seeming prosperity a true good sign in China? Whereas rich people are seeking luxurious houses to live in, the constantly rising housing price is depriving millions of middle-class and poor households of the basic needs for shelter. From this perspective, the boost in high-end housing market seems more like a symptom associated with an exacerbation of the disparity between rich and poor. While developed cities in China are duplicating the image of Dubai, there is no doubt that vast rural areas remain undeveloped as well as lacking the most basic infrastructures. In terms of its macro goal and the responsibility of the government, the country does have to zero in on providing affordable houses for low-income families.

China Bans Skype

Contributed by James (Yuqi) Liu

In the last month of 2010, the Chinese government unexpectedly announced Skype illegal in China. Skype Limited is the Luxemburg-based company that develops and operates the VoIP software Skype, allowing users to make computer-to-computer phone and video calls, and most importantly, computer-to-land line calls.

Since entering the Chinese market in 2007, Skype has maintained a fairly good relationship with the government. For example, it offered to filter out the sensitive words within its chat function as the government intended. It was partly because of this fact that when the Chinese government drove out Facebook, Twitter, Youtube, and in the first half of 2010, Google. Skype survived.

However, things changed. Starting from 2000, IP phones started to get in the market, which significantly harmed the potential profitability of the monopolistic telecom firm in China then: China Telecom. Chinese government soon announced IP phones illegal, even after the split of China Telecom into four oligarchic firms. Despite the government’s regulation, many family simply ignored the laws and installed IP phones, with per minute cost only 5%-10% that of normal phones.

Skype, on the other hand, didn’t begin their business in China as IP phone provider. Most users simply used the online video call function to make phone calls with relatives abroad. But it’s convenient IP call function soon attracted the attentions of IP phone providers. They assigned their users a Skype phone number and install an IP phone for them. Then, users could enjoy the cheap Skype phone calls.

Observing the increasingly stronger IP phone market, the only thing left for the government to do it to ban computer-to-land phone calls offered by Skype. Computer-to-computer calls will still be available, but computer-to-land calls will be completely illegal, with the only previously legal Skype phone illegalized.

Of course, there is still a long way to go if the government wants to drive out IP phones, considering the strength of the underground market and difficulty in detecting the use of Skype or other IP phones. After all, the increasingly lower telephone fee has made the Chinese government move against the tide.

Chinese farmer got life for evading road toll

Then the judges got suspended. (What??)

In this legal mystery reminiscent of contemporary black-humor Chinese satirical cinema, Shi Junfeng of Henan Province put on a fake military plate on his truck and evaded over 500,000 USD worth of road toll (military vehicles are exempt from tolls). So he got a fine, and... life imprisonment.

Then, in a dramatic turn of events, his brother showed up with a confession: that he was the mastermind behind all this, and that Shi Junfeng had taken the blame for him. Never dreaming he'd get such a heavy sentence, the brother - here's the best part - had already bribed the police and expected to welcome his brother back home shortly.

With public outcry too loud to stifle - (1) exorbitant tolls (2) murder and rape get less - the judges involved (2 of them, plus a clerk) got suspended "for failing properly to investigate the case".

Next time we'd better not complain when we cross those bridges. To be able to return to and live in the bay is a privilege.

Contributed by Ying Jiang

Sources: NYtimes, BBC news

The Clash of the Titans

Contributed by Ian Chan

Ahead of his official visit to Washington, D.C. tomorrow, President Hu Jintao of the People's Republic of China shed some light on the views of the ruling Communist Party in a series of answers to submitted questions by the Washington Post and Wall Street Journal. His answers were broadly compromising and conciliatory, but also reflected a growing assertiveness and alternate opinion that will likely clash with the U.S. position.

Relations between the two biggest economies of the world have been rough in 2010. China's reluctance to rein in North Korea's increasingly erratic and militant regime; U.S. sale of arms to Taiwan; China's unwillingness to revalue the Yuan, its domestic currency; and the second round of quantitative easing initiated by the Federal Reserve. It is on this economic front that the real clash is likely to happen between the leaders in their closed-door talks in the coming week, but other issues such as human rights and political reform will probably be raised in private.

China's argument against the Fed's actions reflects a general sentiment among the developing world that the inflationary efforts by the central bank is artificially devaluing the U.S. dollar and exporting inflation to other countries, often developing ones, that are experiencing increased money flows. The American argument against China's currency policy (or manipulation) points toward the cheapness of its exports that distort international trade surpluses and deficits. The U.S. economy, desperately in need of a boost, is trying to double its exports in the near future but will be hard pressed if cheap Chinese goods continue to flood the market. Many economists attribute China's increasing inflationary pressures on the undervalued currency.

But the real meat in President Hu's comments come in his not so subtle remarks against the international financial and currency system. "The current international currency system is the product of the past," he said, directly attacking the Dollar-dominated system that the world currently operates in and which the PRC government is an active participant. China's central bank is the largest holder of U.S. Treasury bonds that are all denominated in the Dollar. Moreover, President Hu highlighted the success of recent moves to allow Yuan trading in offshore sites such as Hong Kong and stated his hope that the Yuan will one day be an international reserve currency.

Whatever the rhetoric is from China, it is unlikely that there will be a substantial move by the central bank to try to replace the Dollar with the Yuan as the global currency. China itself is too much involved with the success and stability of the Dollar to want to change the system as it is. Moreover, the Yuan is not a freely traded currency, and only available for international settlement through Hong Kong, though a vibrant market, is limited in scope. Until China's currency is freely traded on the market and available for international transactions, there is little chance that either the central bank will pursue expansion, or investors/traders will be interested in trading in Yuan. The Dollar dominated system looks like it will stay for the foreseeable future.

Since President Obama's conciliatory tone toward China, coupled with a humbling visit in 2009, has produced little warming of relations or change of policy, many political pundits and politicians on both sides of the aisle have been clamoring for the President to confront China on more fronts directly. The issue of human rights and democracy has been noticeably missing in the President's statements concerning China, and unlike the Clintoninan era where American officials often lectured their Chinese counterparts on economic and social policy, officials these days often avoid confrontational remarks and aim to compromise on all fronts. Given the President's need for a public boost and broadly intepreting China's reluctance to change, it may be Obama's best shot if he is seen in public to emphasis human rights and democracy and press the Chinese President for substantive reforms in the political system. Reformers, who seem to be led by the Chinese Prime Minister Wen Jiabao, have been noticeably silenced in the past year on the issues of reform, as hardliners including President Hu and the military have dominated public appearances and the media. Although the President's attitude and statements are unlikely to change much at the top, it may be seen by activists on both sides of the Pacific as a rally to action and progress.

China's Military: More Control and More of a Role?

Contributed by Autumn Carter

In a Time article last week, Fareed Zakaria took a look back at the tensing of U.S.-China relations over the past few years. His piece focused on the political relations between the two current regimes and used the angle to frame the nations' bilateral military relations.

Zakaria asserted,

"Over the past two years, China has dealt with the Obama Administration in a puzzling manner. Barack Obama came into office talking about the importance of great-power relationships and the supreme importance of strategic ties with China. He traveled to China and marked the trip by accommodating the Chinese in various symbolic ways. Despite all this, China has been distinctly combative toward Obama."

While it is true that President Obama did make official statements about building the relationship between the U.S. and China, and while he did make a major visit to China early on in his term, his administration's approach to China has also been muddled with contradictory words and actions. In the same breath, administration officials could be heard assuring the Chinese that buying the dollar was not a gamble but also supporting the imposition of broad tariffs on Chinese imports into America. One can certainly argue that there have been confusing diplomatic gestures on both sides of the ocean.

But ultimately, Zakaria does not really seem to doubt that the CCP is moving more towards political cooperation with the U.S. and away from hostility towards the U.S. Zakaria does pose the question of whether the Chinese military has that same stance towards the U.S. military. He argues that as the Chinese military has become a stronger player within China, its influence may begin to bleed more into relations with the U.S. And the major fear put forth is that the CCP might be in the process of loosing control of the military, and he for support he offered the following, "During his recent trip to China, when meeting with President Hu Jintao, Gates mentioned the Chinese military's test of its new stealth fighter. Hu appeared not to know about the test flight."

It would be a leap to argue that this one instance proves that President Hu's administration is losing control of its geopolitical relations. But there is definitely a question of what role China's military will play in shaping the tone of discourse between China and the U.S. as both nations consider military implications in their short- and long-term bilateral strategies.

The Case for Western and "Chinese" Upbringing

Contributed by Ian Chan

In a recent controversial column by Amy Chua in the Wall Street Journal, the author laid out the case for a particular brand of parenting she terms the "Chinese" way. The term Chinese here refers not to the particular geographic location of modern day China, nor the ethnicity of the Chinese people, but of a mindset of parenthood that contains a long laundry list of "don't"s and a continuous measure of success in very narrow terms. For example, she listed her ability to restrain her children from sleepovers, participating in plays, and never taking anything but an A as an acceptable grade as evidence of the success of her children.

While I was brought up and still live in a household that probably resembles that of Ms. Chua, I nevertheless was affected equally by four years of high school education in a New England Prep School that emphasized liberal education philosophies and advanced individualism. And now I am at Stanford, the process of educating me in the "Western" way has continued and my development has been, is, and always will be a constant struggle between these two schools of parenting.

I personally think that, without bias of course, that my blend of education has given me the best opportunities and achievements that not only I am proud of, but my family is proud of and society recognizes. It is not merely by chance that I have landed myself multiple awards following my matriculating at Choate Rosemary Hall and graduating with honors, and it is definitely not by chance that I have been elected, selected, and chosen to lead many activities here at Stanford.

Before one criticizes me for my self-laudatory remarks, consider the reasons I believe I succeeded and the points I agree and disagree with Ms. Chua. First, I definitely agree that a strict regiment of work and discipline is vitally important for a child's development. As a student going through the rigorous rote memorization educational system in Hong Kong, every day was planned out for me in accordance to the classes I needed to face (a good dozen at any one time) and excel in them. If I was showing weakness in a particular area, I was not given a choice to drop but to dig deeper and master what I did not know. Failure was an option, yes, but only after all resources have been utilized and I have tried my absolute hardest. This resilient attitude has brought me many wonders and have led me through more than one trough in my life where I probably would have given up. Looking around at my classmates who have been brought up in the most permissive households, too often I see a self-defeatist attitude that adversity is merely evidence of inadequacy and therefore forfeit is the only option. Although I believe we are all born with different talents and expertise, I also believe that without trying the hardest and utilizing all resources at my disposal, I will merely be beating down myself instead of bravely confronting tasks and knowledge that many before me have easily mastered.

Where I do disagree with Ms. Chua is the way she imposed her own likes and dislikes in the activities and lives of her children. My parents were strict, but they always asked my opinion and preference in determining my priorities. Once I chose my priorities, the same regiment that Ms. Chua applied affected me, but these were priorities that either I enjoyed or deemed necessary for success. A combination of input from the children and external pressure from the parents seem to be the best mode of success in this case. Moreover, I question the motive of the likes of Ms. Chua, who often pride themselves in their rearing of children and claim "bragging rights" in social gatherings. At the end of the day, who's education are we looking after? Who's life is being altered forever?

To answer the above two questions my "Western" education has definitely influenced my thought. Although I believe I have a responsibility to respect my parents and take care of them in their old age (note even this point differs from the majority of Americans who believe that once children leave a household they have little to do with the parents), my parents and I also agree that it is my life that they are investing in and that I should be ultimately responsible for the decisions and successes. Being more than 8,000 miles away from my parents, their reach into my academic, extracurricular, and personal life was limited. Their recognition of this fact led to their belief that their best shot at producing a successful son was to instill in him a sense of responsibility and thirst for success that was intrinsic and beyond eternal pressures. Yes I would be rewarded with the occasional gadget that I always wanted if I did exceptionally well, but no my priorities were never questioned so long as I tried my hardest (often streaming, kicking, bleeding, and coughing along the way), or I did well in them. The liberal education of the New England Prep school culture emphasized individual action and decision. Choose your own curriculum, develop your own senior thesis, start your own community service project, all of these were imperatives that were encouraged and facilitated.

In the new age of of the individual when a person armed with a computer and Internet access can start a company, wreck a country, or date someone online, the traditional perimeters of success and measurable achievement are breaking down. One who is not responsible for his own actions and success is surely not going to succeed anymore. The old elite that prized family privileges and small-circle gatherings is falling apart as a new generation of modern citizens with a suave knowledge of new technology demand greater autonomy.

If China, and the "Chinese" mothers that inevitably populate the country and drive its youth not recognize that the 21st century is the century of the individual where the public sector and private sector fall away to a new wave of entrepreneurs and original thought, then China's rise will be limited and temporary. But it seems that many Chinese parents do recognize this fact, as the halls of top-tier high schools, universities in the U.S. and the U.K. are increasingly filled by eager, ambitious students from the mainland ready to embrace an alternative worldview. One hope is that more forums such as FACES can continue to facilitate discussion and breed a new generation of leaders that emphasize individualism and interdependence to create a better world for all.

A review of perspectives on science and research in China

Contributed by Ying Jiang

Many have been impressed by the pace of technology-industrialization in China. The US is especially worried about China's development of clean energy-related fields and superior student test scores in science and math (albeit in just the relatively advanced coastal city of Shanghai). However, the true might of China as a knowledge and technology creator has also been repeatedly called into question, owing to its reputation for lacking a healthy and fair environment for both fundamental research and product-forming processes.

In the latter aspect, Westerners are familiar with the controversial state of affairs regarding intellectual property. As for basic scientific research, unethical behavior too pervades. Scientific fraud committed includes data fabrication, falsification, plagiarism (and splitting of results into different reports, an act that, while not unethical strictly speaking, increases the number of publication at the cost of reducing the scholarly impact, if not integrity, of the researched work). A debate in the Times early this year presented a variety of opinions on R&D in China, ranging from the deeply critical (corruptive, stifling ambience) to the optimistic (support for R&D comes from the top). As the year proceeded, a case of nationwide cheating committed by Zhang Wuben, a nutrition therapist with fraudulent credentials, was massive enough to catch the attention of foreign media. The Times re-opened the topic of Chinese fraud by presenting statistics and examples, and alarming quotes from overseas Chinese students who take fraud to be a social necessity.

It is a known view that those at the policy level could be ultimately responsible for the irresponsible and soul-wrecking activities of scholars. Even if one had respected the scientific spirit and wanted to keep his integrity, he couldn't do so without battling issues to do with survival. This opinion finds proof recently in a Science editorial co-authored by Yigong Shi and Yi Rao The authors describe with candor and denounced with urgency the demeriting manner in which the top bureaucratic agencies assign scientific funding to scientists who gain preferential status through personal relationship building. The article did not hint the existence of other rumored, more sordid aspects of the process, for example, of bureaucrats making the recommendation taking a fraction of the grant money. Should cases of corruption be severe in extent or even exist, saving the scientific culture of China may be tougher yet.

What the Times called an integrity problem the journalist Sam Geall, in an earlier article in the New Humanist, described with more insight and with reference to more fundamental issues concerning the psyche of the Chinese scientific community (or of Chinese people on certain levels): "repeatedly stymied by ideology, superstition, bureaucratic thinking and fear of dissent". With this, one delves into the different realm of knowledge known as the Chinese (or Asian to some great extent) work culture, and whether it's antithetical to scientific achievements - a subject that has surfaced to scrutiny lately. The Asian culture is generally characterized as collectivistic with the stress of an individual to his superiors being an important component of his ties to the society. This results in manners of knowledge-intake - rote-learning, following known texts and procedures - that is undesirable for creative thinking and excellence. The general stress of interpersonal ties in a collectivistic society can also be used to explain intellectual cronyism, a practice seemingly in fundamental contrast to the employment of the scientific method (based on impersonal observation and deduction).

The question is, is there hope? In another Science article on the Asian R&D scene, the authors proposed "8 recommendations" which constitute general policy and education reforms. In general, they believe a new wave of "enlightened politicians and scientific leadership" would be the key to truly start nurturing great scientific talents and institutes in Asia (China of course included). Till then, the West may still hold its pride for a while for being the founder and upholder of the spirit of modern science.

Sources: NYTimes, The New Yorker, The New Humanist, Science

Wikileaks and China’s Next Top Duo

Contributed by Cathy Zhu


Two wikileaked conversations from 2007 have brought China’s fifth generation leadership back under the spotlight. Xi Jinping, has been considered “heir” to Hu Jintao ever since his appointment to vice chairmanship of the Central Military Commission (October 18, 2010). Li Keqiang, China’s current Executive Vice-Premier, is speculated as Premier Wen’s likely successor. Recent Wikileaked cables include two conversations these two leaders respectively had with US Ambassador Clark J. Randt back in 2007, when both of them were provincial party secretaries. Recent press commentary suggest that these conversations were surprisingly revealing to the international community.


Li Keqiang was formerly party secretary of Liaoning Province, one of China’s poorer regions. Candidly admitting that China’s GDP figures were “man-made” or “for reference only”, he claimed to use electricity consumption, volume of rail cargo, and amount of loans disbursed as indicators of Liaoning’s economic health. Demystifying the party slogan “harmonious society”, he translated the term into policy as creating jobs for Liaoning residents. He admitted that corruption was the gravest concern of most Liaoning residents. Besides increasing transparency and supervision, Li added prison tours as part of public official education--taking incumbent bureaucrats to visit former corrupt party officials in prison. (Wikileak accessible here.)


As party secretary of one of China’s richer provinces, Xi Jinping faced different concerns. With a relatively low income gap and the one of highest GDP per capita’s among China’s provinces, Zhejiang’s residents were more worried about how to invest their savings in context of China’s undeveloped financial sector. Among healthcare, education, and housing, work styles of party officials was apparently a concern of Zhejiang residents, but not something that people would “take to the streets” for. The Guardian highlights the paragraph in which Xi discusses his preference for Hollywood WWII movies, saying that clearly demarcate between good and evil, unlike certain recent Chinese movies that “neglect the values they should promote”. (Wikileak cable accessible here.)

The North Korea Debacle

Contributed by Ian Chan

It seems like a never-ending nightmare for diplomats and military officials on both sides of the pacific: North Korea conducting some military action unilaterally and then threatening to respond to any acts of self-defense, the U.S. escalating exercises with South Korea, and China calling for "all sides to show restrain". But following the the recent shelling of Yeonpyeong Island, a South Korean military base that caused the death of several civilians and soldiers, there seems to be some change in this dynamic.

Following the shelling, South Korea responded in force and sent out fighter jets to patrol the area, the U.S. sent in the USS George Washington, a aircraft carrier that is a potent symbol of power in the Yellow Sea, and China has called for emergency consultations by inviting a North Korean official to Beijing. However, under all that diplomatic language there seems to be more. As the State Department cables released by WikiLeaks to international newspapers show, there seems to be a gradual shift in China's view of the North Korean regime and its unwavering support for its neighbors. This shift in view, according to the cables, go all the way to the top, and reveal a distancing that has never been seen before.

The leaks show that officials increasingly recognize that the alliance is not bringing any benefits to the Chinese, that the North's nuclear activity is a threat to the world, that the North is like a "spoiled child", that China can handle at least 300,000 refugees from a possible regime collapse, and that Beijing would be alright with a unified peninsula under the government in Seoul. These views, coupled with China's push for a renewal of the six-party talks and emergency consultations, seem to signal a change in stance.

But wait a second, experts in the region and historians have also noted that often even private remarks made by Chinese officials to foreign diplomats maybe more complex than they seem and that a significant shift in China's policy is unlikely, especially under an outgoing leadership. With the foreign policy stances of the possible successor to Hu Jintao, Xi Jinping, unknown to the world, there seems to be a small chance that there will be any official change until 2012. Moreover, China does not like to cave to pressure, in particular American, and the presence of a fully operational and supplied aircraft carrier carrying military exercises so close to its coast must be unsettling for a fledgling nation that feels it is being trapped and boxed in by the U.S. Furthermore, the 60th anniversary of the Korean War will remind the Chinese of their heroic sacrifices for their communist comrades during the conflict and will no doubt be used as a nationalistic rallying cry by the regime in Beijing to shore up domestic support.


Therefore, given these two contrasting views, the only conclusion that could be drawn is that the region remains as volatile as ever, and its players are complex and unpredictable. Kim Jong-il, North Korea's ailing leader, is rumored to be posturing to secure a smooth transition for his third son, Kin Jong-un, which has added to the instability in the regime. The South, under the right-wing government of Lee Myung-bak, has stepped up its defense and hard-line tone. The U.S. and China, in the meantime, will likely continue their proxy jabs and disagree on process and substance. Regime change may be coming, but no one knows how that would happen, and that should be worrying to the international community.

Sources: The Guardian, The Washington Post

Chinese capitalists vs African workers

Contributed by Ying Jiang

A recent New York Times report on a shooting incident at a Chinese-owned Zambian coal mine, Collum Coal, reveals a glimpse of Western impression of Chinese dealings with some of the African governments. In this incident, mine workers who are dissatisfied with wages and erratic work schedules demonstrated their anger by crowding a closed mine shaft, resulting in gun shots from supervisors in (apparently) self-defensive actions. Aside from wage issues, work place safety is also a prime concern.

While the mine-owners denied any wrong of their own, it has become a more common sentiment among Zambians that foreign companies such as Collum Coal exploit and abuse, rather than help and develop, their host country, often protected by a corrupt government. In this case, the words of the Zambian president Rupiah Banda, in an attempt to state that it's unfair to single out the Chinese (foreign companies), sounded absolutely ridiculous. On the other hand, the Times tries to balance its report by incorporating a somewhat humane, West-acceptable response from the Chinese Embassy.

It is ironic that China, a nation which sometimes still wallow in a self-image of the exploited and plundered for its early 20th century encounters with Western powers, has to role-play the exploiter towards countries down the ladder of development. Does this say anything about the evolution of capitalism?

Source: NYtimes

Qihan Li: Tech Watch

Starting from this week’s column, I will introduce up and coming or already popular but somewhat unknown websites and companies from China and America with similar backgrounds or business models to you, the readers, so that you will have a better grasp of the latest trends.  For this week, I will introduce the flash-deal websites that sell products at discounted prices for a short period of time. Companies with such business models like Livingsocial and Vipshop have exploded in both China and America over the past few years and both companies represent a larger trend in their respective nations.

Livingsocial.com

There have been serious rumors around the web that Amazon will invest 100 million dollars in LivingSocial to expand their share of the special-deals and coupons market.  LivingSocial primarily focuses on discounted experiences for bars, salons, and various forms of entertainment in the local area, and the discounts range from 50-80%.  You have probably seen its applications like Visual Bookshelf on Facebook. Due to the economies of scale, it has rapidly expanded to nearly 90 markets and it directly works with local businesses.  They get a share of the businesses’ revenues, and the discounts indirectly advertise the business. Despite fierce competition from large websites like Groupon as well as another 180 smaller websites, LivingSocial has been projected to rapidly expand in America.

Vipshop.com

In China, one-deal-a-day websites are generally not as popular as websites that combine the traditional e-commerce model with limited time and huge discounts.  One example is Vipshop, which recently raised 20 million dollars from venture capital firms DCM and Sequoia.  Vipshop sells middle-tier brand-name clothes and accessories to cities in China and directly works with both international and domestic retailers to increase the discounts.  What separates it apart from competitors may be its wide variety of products and its secured and trustworthy retail chain. Chinese customers always have to worry about fake products, but Vipshop generally eliminates such concerns with its 7-day return policy and the guarantee of China United Insurance. Vipshop has set its eyes on the growing middle-class to increase its sales and offers valuable opportunities to foreign brands to enter the Chinese market. However, with the flash-sale market rapidly expanding, Vipshop has to continue to innovate to stay at the forefront.

Sources: Sina, Venturebeat, Wall Street Journal, Wikipedia. 

U.S., China, and the Association of Southeast Asian Nations

Contributed by Ian Chan

President Obama's trip to Asia following the recent midterm elections highlighted the likelihood that the remaining two years of Obama's current term of office may be dominated by foreign policy as he wrestles domestically with a divided Congress. Many have labeled Obama the so-called "Pacific" President, with his Indonesian upbringing and birth in Hawaii, but the label also extends beyond the biography of the President. The label signals an emphasis in U.S. policy toward Asia and away from its traditional focus in Europe and more recently in the Middle East. Sure, European nations will still remain allies and the enormous stake the U.S. has in the Middle East has not diminished, but Obama and his Secretary of State Hilary Clinton have signalled clearly their intention to heavily engage emerging Asian nations as their economic and geopolitical power rises in the 21st century.

The emphasis on Asia has much to do with the "rise of the rest", as Fareed Zakaria put it in his book "The Post-American World", the U.S. not only should want to, but needs to change its attitude toward emerging markets and their national governments as the post-WWII Washington consensus has slowly disintegrated. In particular, the Association of Southeast Asian Nations (ASEAN) will play a vital role in the ways the U.S. can seek to further its interests in the region without directly clashing with China. ASEAN is mainly an economic forum that facilitates trade and dialogue between member countries, and as a bloc it often negotiates with bigger economies such as China, Japan, South Korea, and the U.S. If the U.S. chooses to be more engaged and pull ASEAN closer, it can act as a powerful check against a rising China that would no doubt seek to dominate the region. It is in ASEAN's interest to maintain their non-aligned status and play the powers off each other in order to get the best deal.

This strategy by ASEAN is reminiscent of the world before 1989. Then, countries such as India were famous in their non-alignment to either the Soviet Union or the United States, despite heavy lobbying, and in turn India was able to reap benefits from both blocs. This mindset is in play in a country no other than Obama's childhood home, Indonesia. A few days before Obama's visit, a high-level Chinese delegation concluded a massive deal with the Indonesian government to invest in badly needed infrastructure. The timing of the package, and the substance of it, clearly shows that while Indonesia is clearly not a Chinese ally or puppet, it sees the benefit of Chinese economic assistance and the void that creates for the U.S. Obama's response was not to match the Chinese package, but to strengthen ties with the Indonesian people by recalling childhood memories, interacting with local culture, and using Indonesian phrases in his speeches. His charm and warmness; however, may not be enough to pull ASEAN countries firmly into the American fold in the new multilateral world. Will this new kind of diplomacy kick off a new Cold War? At this moment, there is no clear sign that the world is turning back to a biploar world, but rather increasingly a multi-polar world where different countries all have an opinion and seek to compromise on all issues. The G-20 is a powerful example of this new way of doing business, and it seems that President Obama, given his character and policy preferences, is well suited for this new world order.

Sources: New York Times, "The Post-American World" by Fareed Zakaria

Will Gap (the fashion brand) succeed in China?

Contributed by Ying Jiang

According to current opinions the answer seems to be no. The reasons come down to the culture and psychology of Chinese fashion consumers: that they are (1) brand and (2) fashion conscious. Therefore foreign luxury brands or middle-range brands who marketted their products as being high-end in China do well (think LV and Haagen Dazs respectively). Lower price-tiered brands, both foreign and local (think H&M and Metersbonwe respectively), that have successfully projected a forward fashion image, also win consumers. Gap, with a moderately known name but non-too-edgy design with relatively expensive prices, is predicted to have a questionable future in China.

Sources: Chinalawblog, Forbes

Obama's Endorsement of India for the UN Security Council & China

Contributed by Belinda Tang 

Obama's recent endorsement of India may be based, at least publicly, in arguments about the growing importance of India in the global arena, but is also clear that the decision has large implications on China, as well, and is at least partly based in trying to send some sort of message to China. China has already expressed many recent doubts about the growing power of other Asian nations and how the US government plans on treating them.

Further, China has always had particularly contentious relations with India because of previous border and power disputes, so this move will be viewed particularly badly by the Chinese government. Combined with the recent endorsement of Japan, too, to join the Security Council, it is not unlikely that Chinese officials view these recommendations and endorsements as a power play against the Chinese government. China obviously views it as important to keep a higher balance of power compared to its other Asian counterparts, and these actions are a hazard towards that goal.

Personally, I understand the need for Obama to make decisions in the best interests of the United States, and if he views the decision to endorse India as one that will help the US, then so be it.  I believe there are certainly going to be repercussions with how China will react to this, however, and Obama should have weighed the consequences of his action more carefully before handing such a strong endorsement. At the point where many experts were saying they were very surprised with the endorsement, one should consider the importance of it, in the first place, and whether it was worth sacrificing some element of Chinese-American relations for.

A Conversation with His Holiness the Dalai Lama

Contributed by Ian Chan

It’s not every day that you get to shake the hand of a Nobel Peace Prize winner and be padded down by CIA agents. One such day for me was Thursday, October 22^nd, 2010. I had given up going to a Model UN conference to Yale with my new team to attend this event, and I have not regretted it for one second. Meeting the Dalai Lama was and will remain one of the most memorable experiences in my life.

It all started with a very strict security checkpoint in an obscure hotel off El Camino Real. Only 4 people were allowed into the sign-in at any one time, and there were men in suits and sunglasses everywhere staring at people, checking bags and jackets. After I sat down in the courtyard, I saw multiple agents standing beside windows of hotel rooms looking down into the courtyard with binoculars. There was a tense murmur among the crowd as no one really knew what to expect nor did they really know when the Dalai Lama was coming. We were all instructed to keep the event on the down low and to arrive at the premise two hours early. I sat with a group of Stanford students and around me I saw not only students of all years, but also activists distributing information packets about Tibet, journalists, academics from Stanford and the UCs, and Tibetan-Americans. The majority of students were all from mainland China and coming from Hong Kong, it was amusing to see the look of mixed emotions on their face. Some were clearly apprehensive about being seen present at an event where the Dalai Lama is attending. Others were clearly excited to be able to meet a stalwart of peace and dialogue in close quarters. And yet others just had a look of indifference or confusion about them. My guess is that most of these students probably grew up only hearing one side of the story about Tibet and the Dalai Lama, and that story was either incomplete or unsatisfying.

Suddenly sirens burst out and we hear a motorcade pull in a fast pace. After a long silence came His Holiness, with a gait that was at moments grave and serious and at others light and relaxed. He seemed like a grandpa who was clearly physically limited but was bursting with positive energy and conversation. He spoke in careful English to the crowd and beckoned them to move closer to the podium. He greeted the guests in Mandarin, English, and Tibetan. He then proceeded to talk about compassion, international understanding, experiences he had meeting different personalities, and his views on life and interaction. The conflict between his government-in-exile and the Community Party was not mentioned with any particular specifics but he stressed dialogue and willingness to talk as the most important elements in any interactions.

The most fascinating part about meeting His Holiness was not the content of his speech, which of course was respectable and well delivered, but the way he interacted with people and the manner in which he spoke. He joked a great deal both in his greetings and his in answers to questions, and he generally smiled whenever he was speaking. Only when he was in contemplation or listening to a translation would he stop smiling, but that would be a fleeting second. For a man who has been put under massive ridicule and official persecution for most of his lifetime His Holiness was extremely optimistic and energetic about life. Any lesser being would sink into depression or at least adopt a more cynical view on life. The Dalai Lama exhibited none of these emotions. His answers to questions were straightforward and honest. Often he would answer right after the question is asked without much self-censoring, and this straightforwardness gave the audience an impression of a frank and honest man, not fearing what he says is wrong but believing in everything he says. I am not saying that I take everything he says as the established law of the land, but his frankness makes hiding anything harder undoubtedly. And when he didn’t know something, such as when someone asked him how he thought the new leadership in Beijing would deal with him and the Tibet issue, he flatly responded with “I don’t know.” Many would expect him to give some kind of guess but he just said he didn’t know and there was no way we can predict the future. For a man of his stature, this was an admirable admittance of human limitations that one does not find from leaders these days.

In all, meeting the Dalai Lama was an experience worth remembering not only because of the peculiar circumstances in which I shook an old man’s hand, but also because of the way he acts, the substance of what he said, and the body of work he represents in pursuit of peace, freedom of expression and religion, rights we in America often take for granted but are not available for a large part of this world.

China's Human Flesh Search Engine

Contributed by Belinda Tang

In the midst of China's debates over Internet censorship and privacy, one role of Netizens on the internet has been increasingly growing over the past few years. Deemed the "human flesh search engine", a method through which Chinese internet users are able to pinpoint, and oftentimes harass, people who have committed some sort of moral crime. While this started with mostly personal violations that the government could not solve--for example, a cheating spouse, or sexually deviant people--the use of this "human flesh search engine" has since expanded out to include issues that are not as morally black and white. Recently, the search engine was used to harass a young Chinese women who was trying to negotiate between Chinese and Tibetan people, and there have also been cases of people being targeted for being "not patriotic" enough.

With the wide possibilities that this tool creates, it is also, of course, important to take into consideration the wide dangers that the use of this search engine can be used towards. As demonstrated, the people who are becoming targeted by the search engine are becoming more and more subjective, and the harassment that occurs oversteps more and more boundaries. In a world where censorship is often pointed out, the Chinese government has done surprisingly little against this human search engine, as it lacks a politically threatening nature. In fact, some argue that the human flesh search engine actually advances many of the grassroots goals at the heart of Chinese communism. Regardless of the government's role in this, however, it's necessary to discuss the potential repercussions of this kind of moral behavior and persecution.

World War on China’s Internet

By Qihan Li

While the American public is watching the politicians battle for gubernatorial and Congressional positions, an all-out war is happening on the Chinese internet. Tencent, a company boasting of approximately 1 billion accounts and 200 million active users, and 360 Antivirus, China’s largest free virus protection company, have attacked one another for the past 40 days. The tensions has have escalated into a full-scale war when Tencent today announced that its programs cannot operate on computers installed with 360 Antivirus’ programs.

You may ask: Why do these companies matter?

Tencent operates QQ, China’s most popular instant messenger program and a series of other programs that range from music to internet browser.  Not only does the regular Chinese citizen rely on Tencent’s programs for communication purposes, it has become the destination for entertainment as well as studies.  The company has become one of the most successful internet companies in China over the past decade, and its www.qq.com is ranked by Alexa as the 2^nd most visited site in China and 10^th most visited in the world.  On the other hand, 360 Antivirus is the new player in the Chinese antivirus industry with only 4 years of existence. However, it currently has 200 million users and its quick ascend has been due to its free strategy and wide range of protection software.  Both are giants in their respective fields so this particular battle may shape the landscape of the future of China’s internet. 

How did we get here?

It started with Tencent releasing a protection software that rivals that of 360’s.  Subsequently, 360 accused Tencent of intruding into the privacies of its users. The battles continued with Tencent uniting several tech giants to criticize 360 for its policies and then 360 releasing a software that disables Tencent advertisement functions. Just over the past day or two, Tencent decided that only one of the two can survive and all of China’s users have to either choose Tencent’s programs or 360’s programs.  

What will happen?

This is an unprecedented move in the history of China’s internet as the future of two large corporations lie in the balance.  The move has been attacked by many people to be completely irresponsible while others defend the move as a form of self-defense. Tencent may have felt that its revenues were seriously threatened by 360’s program and most likely believes that no other program in China can replace QQ while antivirus substitutes can easily be found.  However, such a belief may prove to be dangerous as alternative communication programs fight for the market.  If neither of the companies back off, both companies will come out with a lot less users and one may even disappear.  If one does back off, it may be perceived as weak. While it is unknown at this moment who will win this battle, uninvolved internet companies have a valuable opportunity to enter into the respective markets while the government needs to clearly define the internet boundaries between strategizing and breaking the law and the definition of monopoly.  Despite the uncertainty, what is certain is that hundreds of millions of China’s internet users face a tough decision and ask themselves, “How can such a war break out on my own desktop?”

Sources: Financial Times China, Sina

UN sees China as a Necessary Influence in Sudan and Myanmar Polls

The U.N. Secretary-General Ban Ki-moon asked Security Council China to assist the Sudanese and Myanmar polls. He said in a speech given on Tuesday to the Communist Party, "I asked your government's help in assisting the two sides find their way to a peaceful future, recognizing their shared interests." However, though he claims it is necessary, he has neglected Beijing's own human rights record.

Besides its diplomatic engagement in Sudan, China has a significant peacekeeping mission in the country, which could help with implementing the transport and technical support in the voting.
Additionally, China can ensure that Myanmar, it's southern neighbor moves in a positive direction following the military-run government's staging of the country's first elections in two decades on Sunday.

"I see it as an important test. Will the vote perpetuate an untenable status quo? Or will it set the country on course toward a more open, democratic and inclusive political future?" Ban said.

Criticism towards Ban has been directed due to his disregard of raising specific human rights issues to the Chinese leadership. Primarily, critics are dissatisfied with Ban's fail to act upon the case of dissident writer and Nobel Peace Prize Laureate Li Xiaobo.

Contributed by Iris Yan

Ying Jiang: Anti-Three-Vulgarities Movement

It is rare (and fun) when cultural matters at home in China get caught on by the Western media. The quality of interpretations vary, but many are rather accurate. This August, there was an article in the Economist alliteratively entitled "Functionaries vs Fun: Party Poopers". It described Hu Jintao's resolve earlier to eradicate the "Three Vulgarities" from popular entertainment - "低俗、庸俗、媚俗". Before I start to attempt the impossible translation to distinguish the three, I thought it's greatly illuminating to state that the word "俗" could take the neutral meaning of traditional or/ie popular culture, or a negative connotation when prefixed with the words above: 低 = low; 庸 = mundane; 媚 = fawning/populist. In its fierce and compact style, the Economist rolled its eyes at the act of party functionaries infiltrating popular TV variety shows, presenting "politically correct entertainment". Eg, a match-making show was forbidden to talk about money being a criteria for spouse selection. (The wide contrast between the communist ideal of material minimalism and the materialistic reality of the Chinese society makes an entirely different discussion.) It's a story about censorship. What caught my attention was a brief mention of the CCTV condemnation of the crosstalk artist Guo Degang, in which incident culminated the irony of the Anti-Three Vulgarities - might I say? - Movement.

Guo Degang is known for his popular gigs, in the form of crosstalk - a fast vanishing or politicizing traditional comedic form, that are relevant to social reality and at the same time fairly funny. Those two qualities, to the understanding of most of the Chinese masses, are related - the latter results from the former; a comedian needs to be grounded in real-life materials. In early August, Guo "defended the actions of one of his pupils who beat a television reporter for arriving uninvited at Mr Guo’s home". In the official press, he was branded as being "vulgar", choosing a "江湖" (another impossible phrase: a society outside of official governance, a world where actions and interactions are more immediate, mainly a result of personal/emotional/short-term decisions) styled attitude. Among the netizens, sympathy almost entirely lies with Guo. Here're some of their comments with regards to the "branding":

"我觉得央视作为媒体，不应该带有这么严重的舆论倾向性。对某些不明真相群众会产生误导。"
"I think CCTV as a media body should not carry such serious bias towards the public opinion [it's trying to create]. This'll cause misunderstanding to people who don't know the truth."

"老郭这下栽了吧，和央视斗，地产商都不行，你能行，真是的"
"Old Mr Guo, now you taste defeat. Want to fight with CCTV? Even real estate companies can't. You thought you could??" (sarcasm implied)

Furthermore, comparison in the degree of "vulgarity" has once been drawn between Guo and Xiao Shenyang in a pretty decent Chinese article (which since I haven't been able to find again on the internet). Xiao Shenyang has a feminine stage persona, dresses in drag and constantly tells jokes with sexual connotations - performances that more than a few would describe as being truly vulgar. However, he has appeared on the official Chinese New Year televised show for two years now, garnering obvious official support, allegedly due to his steering clear of politically sensitive contents. This is not to say he doesn't enjoy popular support. After all, "俗" could be popular or vulgar. The line, as many others in China, could be rather arbitrary.

Incidentally, the Newsweek feature of Xiao Shenyang drew comments defending the comedian, mainly out of against-Western-media anger. What do the Chinese people really think? Who's really vulgar? Who should we "anti" (反)?

Surprise surprise! China raises interest rate in unexpected times

Contributed by Qihan Li

Sources: VOA news, FT, WSJ

China’s decision to raise the interest rates of its central bank by 0.25 percentage points has caught the world by surprise.  The raise brings China’s one-year lending rate to 5.56% and one-year deposit rate to 2.5%. It comes at a time of heated discussions regarding RMB’s exchange rate, and the state of the Chinese economy. While China’s recent GDP figures will make any developed nation jealous, (10.3% for the second quarter, 9.5% projected for the third quarter) many scholars in China are still concerned with low domestic demand.  Within the blogosphere and major publications, economists disagree on the ultimate effects of the hike, but most agree on its intentions: to combat domestic inflation and market bubbles.

The year-to-year CPI figure stands at 3.5% in August so the hike in interest rate is interpreted to prevent rises in prices.  Despite the uncertainties regarding consumers’ reactions, what is certain is that small businesses that have taken recent loans will be directly affected, as they will need to pay more in interest.  This may particularly hurt export-oriented companies because the evaluation of RMB has already reduced their competitiveness in foreign markets. On the other hand, state-own enterprises will largely be unaffected since most of them have good capital flows. The effects on the overall economy will be much more difficult to evaluate.  While fewer individuals will borrow money to invest in commodities or real estate, it may not prohibit wealthy private or corporate investors to continue to invest in real estate as a hedge to high inflation.  Earlier policies to cool off the real estate market have somewhat worked but have not changed the general speculation. The effectiveness of this move is to be seen.

On the issue of exchange rate, as Ian previously mentioned, a drastic evaluation will dramatically hurt China’s export industry.  There have been concerns regarding the inflow of hot money due to this hike, pressuring the RMB to appreciate. However, because the RMB is controlled by the People’s Bank of China, the correlation between a higher interest rate and RMB’s exchange rate may be relatively low. This is nonetheless an important aspect to look out for in the upcoming months.